2008 performance enjoys rapid growth; future delivery contract system leads to growth slide due to macro-economic slowdown.
Internal administration strengthening is considered to be the most important in 2009.
Long-term growth space deserves expectation.
“Cautious” rating is maintained. In accordance with its channel expansion and exchange fair status, its 2009-2010E sales revenue is forecasted to be Rmb1947mn and Rmb2276mn, net profit to be Rmb187mn and Rmb225mn, and EPS to be Rmb0.66 and Rmb0.80. Should macro-economy touches the bottom in 2H2009, we will upgrade its 2010 earning forecast. Generally, its current valuation is comparatively low amid the consumption sector. Given its potential growth in the long term, “Cautious” rating is hereby maintained.